Advice Letter Template - PDF by sly74194

VIEWS: 168 PAGES: 11

									STATE OF CALIFORNIA                                                            ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298




          January 22, 2008
                                                                   Advice Letter 3176-E
          Brian K. Cherry
          Vice President, Regulatory Relations
          Pacific Gas and Electric Company
          77 Beale Street, Mail Code B10C
          P.O. Box 770000
          San Francisco, CA 94177


          Subject: Proposal of Pacific Gas and Electric Company to Establish
                   a New Memorandum Account to Record Costs Associated
                   with PG&E’s SmartMeter Program Upgrade


          Dear Mr. Cherry:

          Advice Letter 3176-E is effective December 12, 2007.


          Sincerely,



          Sean H. Gallagher, Director
          Energy Division
                                                  Brian K. Cherry        Pacific Gas and Electric Company
                                                  Vice President         77 Beale St., Mail Code B10C
                                                  Regulatory Relations   P.O. Box 770000
                                                                         San Francisco, CA 94177

                                                                         415.973.4977
                                                                         Fax: 415.973.7226


December 12, 2007


Advice 3176-E
(Pacific Gas and Electric Company ID U 39 E)

Public Utilities Commission of the State of California


Subject:      Proposal of Pacific Gas and Electric Company to Establish a
              New Memorandum Account to Record Costs Associated with
              PG&E’s SmartMeter™ Program Upgrade

Purpose

Pacific Gas and Electric Company (PG&E) hereby requests California Public
Utilities Commission (CPUC or the Commission) approval to establish the
SmartMeter™ Program Upgrade Memorandum Account (SPUMA) to record
costs associated with the SmartMeter™ Program Upgrade prior to Commission
approval of PG&E’s request for rate recovery in its SmartMeter™ Program
Upgrade Application, filed concurrently with this Advice Letter. Upon approval of
this account, PG&E will record all costs associated with the SmartMeter™
Program Upgrade for future review and disposition by the Commission in the
SPUMA.

Background

In its Order Instituting Rulemaking (R.)02-06-001, the Commission began a
process of assessing ways to implement programs and tools that would develop
demand response as a resource to enhance electric system reliability, reduce
power purchase and individual consumer costs, and protect the environment.

On June 16, 2005, PG&E filed its proposal in Application (A.)05-06-028 for full
deployment of PG&E’s Advanced Metering Infrastructure (AMI).              The
Commission approved PG&E’s application in Decision (D.)06-07-027. In the
Decision, the Commission also recognized that “new technology may emerge
that offers PG&E and its customers increased reliability and performance
enhancements” and ordered PG&E to “monitor market place developments so,
whenever feasible, it can upgrade its AMI system and offer its customers
technology upgrades.”
Advice 3176-E                         -2-                    December 12, 2007

Consistent with these Commission directives, PG&E has continued to assess
and evaluate new and developing technologies related to PG&E’s AMI network
(SmartMeter™) and enhanced electric grid management.

PG&E believes several modifications to its current SmartMeter™ Program are
appropriate and PG&E is filing an application, concurrently with this Advice
Letter, that would seek the Commission’s approval to upgrade the existing
SmartMeter™ Program to enable the use of Home Area Network (HAN) devices
and load limiting connect/disconnect switches on virtually all meters in PG&E’s
service area.     These recommended upgrades are consistent with the
Commission’s desire to use advanced technology to enhance customer
involvement in energy demand management and improve energy conservation
throughout California.

PG&E has begun incurring costs associated with the evaluation and testing of
these new technologies, and is poised to incur additional costs. In order to
prevent any delay in the progress of the SmartMeter™ Program Upgrade, PG&E
is now requesting expedited approval to record costs associated with these
upgrades and other costs included in the Application in the proposed
memorandum account, SPUMA. This will preserve the ability of PG&E to obtain
future rate recovery of these costs in the SmartMeter™ Program Upgrade
Application if the Application is approved by the Commission. As outlined in the
attached Preliminary Statement proposed herein, the following categories of
costs will be recorded to this memorandum account: (1) costs associated with
evaluation and testing of promising technologies, included in the Application, (2)
costs associated with the deployment of technologies included in the Application,
(3) costs associated with systems integration work necessary to enable these
new technologies, which are also included in the Application, and (4) other costs
included in the Application.

As mentioned above, PG&E is making this filing in order to prevent any delay in
the progress of the SmartMeter™ Program Upgrade, and in order to meet the
Commission’s directives in D.06-07-027 that PG&E should monitor new
technologies to offer customers potential upgrades. Therefore, approval of this
memorandum account is needed in order to ensure that necessary SmartMeter™
Program Upgrade activities may continue without delay and without precluding
rate recovery at a future date, after Commission review.

Proposed Preliminary Statements

PG&E is requesting Commission authority to establish the SmartMeter™
Program Upgrade Memorandum Account (SPUMA) to record all expenses
associated with the SmartMeter™ Program Upgrade prior to Commission
approval of PG&E’s SmartMeter™ Program Upgrade Application, filed
concurrently with this Advice Letter. These costs are only electric. The proposed
Preliminary Statement EU is attached.
Advice 3176-E                         -3-                    December 12, 2007


If the Commission approves the SmartMeter™ Program Upgrade Application,
PG&E will transfer the SPUMA balance to the cost recovery mechanism
approved in that Application.

Request for Commission Approval

PG&E requests the Commission approve this Advice Letter, effective as of the
filing date, specifically finding that:

      1. PG&E is authorized to establish a new memorandum account, the
         SPUMA, to record costs associated with the SmartMeter™ Program
         Upgrade beginning as of the date of this filing, subject to future
         disposition by the Commission.

      2. PG&E is authorized to seek recovery of the balance in the SPUMA
         through its SmartMeter™ Program Upgrade Application or another
         related proceeding.

Protests

Anyone wishing to protest this filing may do so by letter sent via U.S. mail, by
facsimile or electronically, any of which must be received no later than January
2, 2007, which is 21 days after the date of this filing. Protests should be mailed
to:

                         CPUC Energy Division
                         Tariff Files, Room 4005
                         DMS Branch
                         505 Van Ness Avenue
                         San Francisco, California 94102

                         Facsimile: (415) 703-2200
                         E-mail: jnj@cpuc.ca.gov and mas@cpuc.ca.gov

Copies of protests also should be mailed to the attention of the Director, Energy
Division, Room 4004, at the address shown above.
Advice 3176-E                           -4-                    December 12, 2007

The protest also should be sent via U.S. mail (and by facsimile and electronically,
if possible) to PG&E at the address shown below on the same date it is mailed or
delivered to the Commission:

                          Brian K. Cherry
                          Vice President, Regulatory Relations
                          Pacific Gas and Electric Company
                          77 Beale Street, Mail Code B10C
                          P.O. Box 770000
                          San Francisco, California 94177

                          Facsimile: (415) 973-7226
                          E-mail: PGETariffs@pge.com

Effective Date

As discussed above, PG&E requests the Commission approve this Advice Letter
effective the date of filing. PG&E’s request is for a specific finding that PG&E is
authorized to recover the account balance described herein through distribution
rates, as described in PG&E’s preliminary statement.

Notice

In accordance with General Order 96-B, Section IV, a copy of this Advice Letter
is being sent electronically and via U.S. mail to parties shown on the attached list
and the parties on the service list for A.05-06-028. Address changes to the
General Order 96-B service list should be directed to Rose de la Torre at (415)
973-4716. Send all electronic approvals to PGETariffs@pge.com. Advice letter
filings can also be accessed electronically at:

                           http://www.pge.com/tariffs




Vice President - Regulatory Relations


Attachments


cc:   Service List A.05-06-028
                   CALIFORNIA PUBLIC UTILITIES COMMISSION
                                       ADVICE LETTER FILING SUMMARY
                                              ENERGY UTILITY
                        MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)
Company name/CPUC Utility No. Pacific Gas and Electric Company (ID U39 M)
Utility type:                                Contact Person: Megan Hughes
  ELC             GAS                        Phone #: (415) 973-1877
  PLC             HEAT          WATER        E-mail: mehr@pge.com
                  EXPLANATION OF UTILITY TYPE                                (Date Filed/ Received Stamp by CPUC)

ELC = Electric          GAS = Gas
PLC = Pipeline          HEAT = Heat         WATER = Water
Advice Letter (AL) #: 3176-E                                                     Tier: 3
Subject of AL: Proposal of Pacific Gas and Electric Company to Establish a New Memorandum Account to Record Costs
Associated with PG&E’s SmartMeter™ Program Upgrade
Keywords (choose from CPUC listing): Memorandum Account, Demand Side Management
AL filing type:    Monthly      Quarterly    Annual   One-Time      Other _____________________________
If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:
Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No
Summarize differences between the AL and the prior withdrawn or rejected AL1: ____________________
Is AL requesting confidential treatment? If so, what information is the utility seeking confidential treatment for: No
Confidential information will be made available to those who have executed a nondisclosure agreement:           Yes   No
Name(s) and contact information of the person(s) who will provide the nondisclosure agreement and access to the
confidential information:
__________________________________________________________________________________________________
Resolution Required?      Yes     No
Requested effective date: December 12, 2007                             No. of tariff sheets: 3
Estimated system annual revenue effect (%): N/A
Estimated system average rate effect (%): N/A
When rates are affected by AL, include attachment in AL showing average rate effects on customer classes
(residential, small commercial, large C/I, agricultural, lighting).
Tariff schedules affected: New Electric Preliminary Statement EU
Service affected and changes proposed 1 : N/A
Pending advice letters that revise the same tariff sheets: N/A

Protests, dispositions, and all other correspondence regarding this AL are due no later than 20 days after the date of
this filing, unless otherwise authorized by the Commission, and shall be sent to:
CPUC, Energy Division                                       Pacific Gas and Electric Company
Tariff Files, Room 4005                                     Attn: Brian K. Cherry
DMS Branch                                                        Vice President, Regulatory Relations
                                                            77 Beale Street, Mail Code B10C
505 Van Ness Ave.,
                                                            P.O. Box 770000
San Francisco, CA 94102                                     San Francisco, CA 94177
jnj@cpuc.ca.gov and mas@cpuc.ca.gov                         E-mail: PGETariffs@pge.com
                                                         ATTACHMENT 1
                                                          Advice 3176-E
Cal P.U.C.                                                 Cancelling Cal
Sheet No.    Title of Sheet                              P.U.C. Sheet No.
26746-E      Preliminary Statement Part EU--SmartMeter               New
             Program Update Memorandum Account
26837-E      Table of Contents -- Rate Schedules                 26685-E
26838-E      Table of Contents -- Title Page                     26516-E




                                                                 Page 1 of 1
           Pacific Gas and Electric Company                                   Original      Cal. P.U.C. Sheet No.       26746-E
           San Francisco, California                          Cancelling                    Cal. P.U.C. Sheet No.
           U 39


                                                   PRELIMINARY STATEMENT
                                                          (Continued)

 EU. SMARTMETER™ PROGRAM UPGRADE MEMORANDUM ACCOUNT (SPUMA)                                                                 (N)
                                                                                                                             |
      1.    PURPOSE: The purpose of the SmartMeter™ Program Upgrade Memorandum Account (SPUMA)                               |
            is to record and recover the incremental Operations and Maintenance (O&M) and Administrative                     |
            and General (A&G) expenditures and capital-related costs incurred for the SmartMeter™ Program                    |
            Upgrade and associated therewith.                                                                                |
                                                                                                                             |
      2.    APPLICABILITY: The SPUMA applies to all customer classes, except for those specifically                          |
            excluded by the Commission.                                                                                      |
                                                                                                                             |
      3.    RATES: The current SPUMA does not have a rate component.                                                         |
                                                                                                                             |
      4.    ACCOUNTING PROCEDURE: PG&E shall maintain the SPUMA by making entries to this account                            |
            at the end of each month as follows:                                                                             |
                                                                                                                             |
            a.      A debit entry equal to PG&E’s incremental O&M and A&G expenses and capital-related costs                 |
                    incurred for the SmartMeter™ Program Upgrade and associated therewith. These capital-                    |
                    related, O&M and A&G costs may relate to the following categories of work: (1) evaluation                |
                    and testing of promising technologies included in the SmartMeter™ Program Upgrade                        |
                    Application (filed December 12, 2007), (2) deployment of technologies included in the                    |
                    Application, (3) systems integration work necessary to enable these new technologies and                 |
                    included in the Application, and (4) other costs included in the Application.                            |
                                                                                                                             |
            b.      A debit entry equal to the interest on the average of the balance at the beginning of the month          |
                    and the balance after the above entry at a rate equal to one-twelfth the interest rate on three-         |
                    month Commercial paper for the previous month, as reported in the Federal Reserve                        |
                    Statistical Release, H.15, or its successor.                                                             |
                                                                                                                             |
      5.    DISPOSITION: Upon Commission approval of a cost recovery mechanism in the SmartMeter™                            |
            Program Upgrade Application or another proceeding determined by the Commission, PG&E will                        |
            transfer the account balance, not to exceed the approved expenditure level, from the SPUMA to the                |
            appropriate mechanism for recovery, as may be approved by the Commission at that time. Capital-                  |
            related costs will be recorded after the rate base “used and useful” standards are satisfied.                   (N)




                                                                                                              (Continued)

Advice Letter No.       3176-E                          Issued by                        Date Filed           December 12, 2007
Decision No.                                        Brian K. Cherry                      Effective
                                                     Vice President                      Resolution No.
107621                                             Regulatory Relations
                                                                             Revised          Cal. P.U.C. Sheet No.           26837-E
           Pacific Gas and Electric Company                 Cancelling       Revised                                          26685-E
           San Francisco, California

                                                   TABLE OF CONTENTS

                                                  Preliminary Statements

                                                                                                                      CAL P.U.C.
SCHEDULE            TITLE OF SHEET                                                                                    SHEET NO.

Part EM             ClimateSmart Balancing Account................................................................................ 26098-E
Part EN             British Columbia Renewable Study Balancing Account .............................................. 26197-E
Part EO             California Solar Initiative Balancing Account.................................................... 26211-26213-E
Part EP             Market Redesign and Technology Upgrade Memorandum Account ........................... 26406-E
Part EQ             Humboldt Bay Power Plant Memorandum Account ......................................... 26307-26308-E
Part ER             Air Conditioning Tracking Memorandum Account .......................................... 26327, 26327*-E
Part ES             Demand Response Aggregator Incentives Memorandum Account............................. 26384-E
Part EU             SmartMeter™ Project Upgrade Memorandum Account…………………………...……26746-E                                                     (N)
                                                                     Rate Schedules
                                                                         Residential
Counties            Listing of Counties Covered Under Electric Rate Schedules ....................................................
Served                                                                                                                             8285-E
E-1                 Residential Service ...............................26003, 26575-26576, 26004, 26241, 19910, 25713-E
E-3                 Experimental Residential Critical Peak Pricing Service........................... 25673, 26005-26006,
                                     26007-26008, 24087, 26009, 24089, 26010, 25968, 24779, 26242, 24780-E
EE                  Service to Company Employees ................................................................................. 24091-E
EM                  Master-Metered Multifamily Service .................... 26583, 26011-26012, 26584, 24783, 20648,
                                                                                                                                  25714-E
ES                  Multifamily Service ........................................................26013-26014, 26243, 23640, 25715-E
ESR                 Residential RV Park and Residential Marina Service.................. 26015-26016, 26244, 20657,
                                                                                                                                  25716-E
ET                  Mobilehome Park Service ................................. 26017-26018, 26245, 22149, 26679-26680-E
E-6                 Residential Time-of-Use Service.......................24801, 26019-26020, 25969, 26754, 25094-E
E-7                 Residential Time-of-Use Service.......................26755, 26021-26022, 25971, 26756, 25095-E
E-A7                Experimental Residential Alternate Peak Time-of-Use Service .............. 24813, 26023-26024,
                                                                                                              25972, 26757, 25096-E
E-8                 Residential Seasonal Service Option ........................................26025-26026, 26758, 25719-E
E-9                 Experimental Residential Time-of-Use Service for Low Emission Vehicle Customers..............
                                                                        26759, 26027-26030, 26248, 26760-26761, 24827-E
EL-1                Residential CARE Program Service..............................24118, 26031, 26249, 26762-26763-E
EML                 Master-Metered Multifamily CARE Program Service ................. 25471, 26032, 24832, 26764,
                                                                                                                                  25721-E
ESL                 Multifamily CARE Program Service...................26033-26034, 26250, 25473, 26765, 25722-E
ESRL                Residential RV Park and Residential Marina CARE Program Service ................ 26035-26036,
                                                                                                     26251, 25475, 26766, 25723-E
ETL                 Mobilehome Park CARE Program Service.......... 26037-26038, 26252, 22180, 26767, 26682,
                                                                                                                                  26683-E
EL-6                Residential CARE Time-of-Use Service............ 24849, 26039-26040, 25974, 26768-26769-E
EL-7                Residential CARE Program Time-of-Use Service ...................... 26770, 24857, 26041, 25976,
                                                                                                                       26771, 24860-E
EL-A7               Experimental Residential CARE Program Alternate Peak Time-of-Use Service ............ 24861,
                                                                                              25480, 26042, 25978, 26772, 25980-E
EL-8                Residential Seasonal CARE Program Service Option .............25482, 26043, 26773, 25726-E
E-FERA              Family Electric Rate Assistance ...........................................................26774, 26339, 21643-E
E-RSMART            Residential SmartRate Program ...................................................................... 26390-26394-E




Advice Letter No.                 3176-E                           Issued by                                         Date Filed: 12/12/2007
Decision No.                                                   Brian K. Cherry                                                     Effective
                                                                Vice President                                               Resolution No.
107622                                                        Regulatory Relations
                                                                                       Revised              Cal. P.U.C. Sheet No.                26838-E
          Pacific Gas and Electric Company                         Cancelling          Revised                                                   26516-E
          San Francisco, California

                                                        TABLE OF CONTENTS

                                                            Table of Contents

                                                                                                                                         CAL P.U.C.
SCHEDULE            TITLE OF SHEET                                                                                                       SHEET NO.

Title Page          .................................................................................................................................... 26516-E
Rate Schedules      .....................................................................................26837, 26515, 26540, 26689, 26573-E                       (T)
Preliminary         .................................................................................................26696, 26506, 26444, 26382-E
Statements
Rules               .................................................................................................................................... 26568-E
Maps,               .................................................................................................................................... 26322-E
Contracts and
Deviations
Sample Forms        ..............................................................26569, 26541-26543, 25876, 26294, 26686, 25961-E




Advice Letter No.                   3176-E                                Issued by                                                    Date Filed: 12/12/2007
Decision No.                                                          Brian K. Cherry                                                                Effective
                                                                       Vice President                                                          Resolution No.
107623                                                               Regulatory Relations
PG&E Gas and Electric
Advice Filing List
General Order 96-B, Section IV
ABAG Power Pool                      Douglass & Liddell                       PG&E National Energy Group
Accent Energy                        Downey, Brand, Seymour & Rohwer          Pinnacle CNG Company
Aglet Consumer Alliance              Duke Energy                              PITCO
Agnews Developmental Center          Duke Energy North America                Plurimi, Inc.
Ahmed, Ali                           Duncan, Virgil E.                        PPL EnergyPlus, LLC
Alcantar & Kahl                      Dutcher, John                            Praxair, Inc.
Ancillary Services Coalition         Dynegy Inc.                              Price, Roy
Anderson Donovan & Poole P.C.        Ellison Schneider                        Product Development Dept
Applied Power Technologies           Energy Law Group LLP                     R. M. Hairston & Company
APS Energy Services Co Inc           Energy Management Services, LLC          R. W. Beck & Associates
Arter & Hadden LLP                   Exelon Energy Ohio, Inc                  Recon Research
Avista Corp                          Exeter Associates                        Regional Cogeneration Service
Barkovich & Yap, Inc.                Foster Farms                             RMC Lonestar
BART                                 Foster, Wheeler, Martinez                Sacramento Municipal Utility District
Bartle Wells Associates              Franciscan Mobilehome                    SCD Energy Solutions
Blue Ridge Gas                       Future Resources Associates, Inc         Seattle City Light
Bohannon Development Co              G. A. Krause & Assoc                     Sempra
BP Energy Company                    Gas Transmission Northwest Corporation   Sempra Energy
Braun & Associates                   GLJ Energy Publications                  Sequoia Union HS Dist
C & H Sugar Co.                      Goodin, MacBride, Squeri, Schlotz &      SESCO
CA Bldg Industry Association         Hanna & Morton                           Sierra Pacific Power Company
CA Cotton Ginners & Growers Assoc.   Heeg, Peggy A.                           Silicon Valley Power
CA League of Food Processors         Hitachi Global Storage Technologies      Smurfit Stone Container Corp
CA Water Service Group               Hogan Manufacturing, Inc                 Southern California Edison
California Energy Commission         House, Lon                               SPURR
California Farm Bureau Federation    Imperial Irrigation District             St. Paul Assoc
California Gas Acquisition Svcs      Integrated Utility Consulting Group      Sutherland, Asbill & Brennan
California ISO                       International Power Technology           Tabors Caramanis & Associates
Calpine                              Interstate Gas Services, Inc.            Tecogen, Inc
Calpine Corp                         IUCG/Sunshine Design LLC                 TFS Energy
Calpine Gilroy Cogen                 J. R. Wood, Inc                          Transcanada
Cambridge Energy Research Assoc      JTM, Inc                                 Turlock Irrigation District
Cameron McKenna                      Luce, Forward, Hamilton & Scripps        U S Borax, Inc
Cardinal Cogen                       Manatt, Phelps & Phillips                United Cogen Inc.
Cellnet Data Systems                 Marcus, David                            URM Groups
Chevron Texaco                       Matthew V. Brady & Associates            Utility Resource Network
Chevron USA Production Co.           Maynor, Donald H.                        Wellhead Electric Company
City of Glendale                     MBMC, Inc.                               White & Case
City of Healdsburg                   McKenzie & Assoc                         WMA
City of Palo Alto                    McKenzie & Associates
City of Redding                      Meek, Daniel W.
CLECA Law Office                     Mirant California, LLC
Commerce Energy                      Modesto Irrigation Dist
Constellation New Energy             Morrison & Foerster
CPUC                                 Morse Richard Weisenmiller & Assoc.
Cross Border Inc                     Navigant Consulting
Crossborder Inc                      New United Motor Mfg, Inc
CSC Energy Services                  Norris & Wong Associates
Davis, Wright, Tremaine LLP          North Coast Solar Resources
Defense Fuel Support Center          Northern California Power Agency
Department of the Army               Office of Energy Assessments
Department of Water & Power City     OnGrid Solar
DGS Natural Gas Services             Palo Alto Muni Utilities

14-Jun-07

								
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